Every day, it seems, there is news in the trade press about
innovations taking place around mobile technology. There’s no doubt
that momentum continues to build around mainstream adoption of a host
of new services that are being offered over mobile devices.
In fact, this week The Wall Street Journal featured a front page article
on mobile advertising. (Free to non-subscribers as I write this.) The
article entitled "Companies Vie for Ad Dollars on Mobile Web" described
mobile advertising as the next Internet gold rush.
That may be true, but, in my opinion, not in the near-term.
Although mobile advertising shows promise as a new channel to reach
consumers, there are still significant challenges in place to stymie
its wide-scale acceptance by mobile subscribers.
First, there are the cultural challenges. Consumers have shown a
propensity to protect their privacy when it comes to their mobile
devices. Studies indicate that consumers in general feel a personal
connection to their phones that limit their willingness to provide open
access to potentially invasive advertising.
For those that have opened the doors, there are stories of consumers
being bombarded by ads they can’t stop but continue to pay for. The
mobile operators claim they can control this problem by promoting only
advertisers that appear on their decks. There may be truth to that.
However, the “lingering doubts” that consumer’s have about “mobile
spam” must first be overcome before you’ll see the kind of growth in
mobile advertising that is being hyped in the trade press these days.
The
next challenge is legislation. As usual, technology has advanced well
ahead of the legislation that is designed to protect consumers.
Although the technology exists to support mobile advertising,
legislation lags around content quality and privacy concerns that are
sure to become key issues as mobile advertising becomes more
prevalent. In the past, mobile operators have been primarily
responsible for monitoring content that is carried over their
networks. But as we continue to move toward an “open mobile web” where
more advertising dollars are involved, the likelihood that content
quality will deteriorate seems quite high.
Of course, there are many other challenges (e.g., device
limitations, revenue models, on-deck/off-decks issues, etc.) that seem
likely to slow mainstream adoption of mobile advertising over the next
few years. However, there is no doubt that mobile technology has huge
market potential for advertisers to interact with consumers in new and
different ways.
Is it the start of the next Internet gold rush? I guess that remains to be seen.
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